STR bill divides property owners, government

BOISE — A bill seeking to address the division between local government concerns and the rights of rental property owners was the subject of a hearing in the House Business Committee on Monday as homeowners and property managers voiced competing concerns. 

Rep. Jordan Redman, R-Coeur d’Alene, who sponsored House Bill 583, said the bill intends to ensure property owners can use their homes for temporary lodging without facing “undue regulation and burdens” from local jurisdictions. The bill would primarily impact short-term rental property owners and marketplaces, such as Airbnb and Vrbo, by limiting when they can be regulated or taxed.

The bill — which will be sent to the House floor for debate — is Redman's third attempt to change how local governments regulate short-term rental properties in their communities.

“This measure strikes the balance between fostering economic opportunity for Idahoans, particularly in the tourist communities, while maintaining neighborhood integrity,” Redman said. 

Under the bill, counties and cities may only enact ordinances on short-term rentals to address the following:

• Requirements for smoke alarms, fire extinguishers, carbon monoxide detectors and removable escape ladders

• Requirements for occupant limits in accordance with international building codes 

• Requirements for informational handouts and the location of exits, first-aid kits, fire extinguishers and contact information of the owner or manager of the property

The legislation bars cities or counties from requiring licenses, fees, permits, certifications or registration to operate a short-term rental. Short-term rental properties can also only be subject to existing ordinances for "noise, parking, nuisance, curfew, and traffic regulations” when such ordinances apply to non-short-term-rental uses as well.

The majority of those who testified Monday spoke in favor of the bill, arguing that it protects the rights of Idaho’s rental property owners.

It was the characterization used by Julie Hill, a real estate agent and Lava Hot Springs resident. She said her city has “abused” local control to harm property owners by enacting ordinances that go beyond protecting public safety, requiring permits for short-term rental businesses and fire suppression systems.

“For small property owners, retirees and working families who are the majority of short-term rental owners in Idaho, these ordinances can make lawful use of property financially impossible,” Hill said. 

Christi Martin, a Boise resident and property manager, discussed how her real estate business has been essential to her family’s livelihood. 

“What we’ve built through our small business is how we provide stability, security, and opportunity for our children,” Martin said, adding that the state’s direction on the issue would provide “stability” for her family and others with short-term rental properties across the state. 

Max Pond, the government affairs director for the Idaho Realtors Association, said the bill aimed to provide “clarity and understanding” for property owners. Although short-term rentals are classified as residential for zoning purposes, Pond said they are subject to a heavier regulatory burden than other residential uses, such as owner-occupied homes and long-term rentals. 

Individuals who opposed the legislation generally cited the bill's potential to restrict local control and the ability of local governments to address infrastructure issues that arise when large numbers of people descend on small Idaho communities for vacation and similar short-term visits.

Josie Gray, a resident of Driggs, spoke against the bill and its potential impact on local governments' ability to protect their communities. In the name of protecting property rights, Gray said the bill strips cities and counties across the state of needed tools to address problems arising from short-term rental properties. 

Although she owns two rental properties, Gray said a proliferation of short-term rentals can eventually saturate neighborhoods and strip them of character. She spoke of one instance of an older woman moving into her subdivision when it was first built, and of being surrounded by families and long-term neighbors. Now, however, many of the homes surrounding her are often vacant, creating a sense of loneliness due to unfamiliarity with her neighbors.

“Local governments need the ability to protect residents like her,” Gray said. “They need to respond to housing shortages, neighborhood stability, quality of life concerns in ways that fit our community. This bill takes that authority away.”

Island Park Mayor Bruce Ard said his community has seen the impact of a significant number of vacation rentals being set up, which have overburdened septic systems, polluted the water and led to residents falling ill due to poor water quality. Without proper regulations in place, these septic systems can continue to be overloaded by serving a population size for which they were not designed, he said. 

Jonathan Wheatley, deputy director of the Association of Idaho Cities, also spoke against the bill and voiced concern that too much weight was being given to individuals who won’t be living in Idaho communities day in and day out. 

While the bill notes local ordinances that apply to all residences for “noise, parking, nuisance, curfew, and traffic regulations” would remain in place, Wheatley said there lacked an effective enforcement mechanism to address property owners with problematic tenants, potentially putting an increasing burden on law enforcement to address any such issues that arise.

Rep. Jeff Cornilles, R-Nampa, acknowledged that property rights were at issue but also expressed concern about the recourse available for ordinance violations. While property managers are available during business hours, this is not the case late at night, leaving many, particularly in rural Idaho, to turn to sheriff's offices to fill the enforcement role. 

“The sheriff will come out when the sheriff can get around to it,” Cornilles said. “And in Valley County at 2 in the morning, 1 in the morning, there’s not many sheriffs, so I’m afraid we might overburden them, but I get the property rights issue."

Also focused on potential costs to first responders, Rep. Michael Veile, R-Soda Springs, said some Idaho counties have imposed fees on short-term rentals to fund fire protection districts and other essential services that can face higher demand during sporadic influxes of visitors. 

Veile recalled a prior conversation with the Bear Lake County Fire District, which is tasked with protecting a growing number of properties while losing resources. If these counties were barred from imposing fees on short-term rentals, it would leave fewer options for these services to secure the funding needed to operate, Veile said. 

Jeremy Chou, a government relations attorney at Givens Pursley representing Airbnb, said it was not appropriate for a single entity or industry to be singled out in public policy. “If you’re talking about or requiring more fees or assessments as a way to support fire districts, they should be applied to everybody because it serves everybody,” Chou said.

After several committee members recused themselves from voting under House Rule 80, indicating a conflict of interest, the bill was voted to go to the House floor with a "do pass" recommendation.